<h1>Demonetisation Boosts Tax Compliance: Income Tax Returns and GST Registrations Surge, Formalizing India's Economy.</h1> The demonetisation of Rs. 500 and Rs. 1000 notes aimed to transition India towards a tax-compliant society by formalizing the economy and curbing black money. Despite most demonetised currency returning to banks, the move facilitated the identification of 1.8 million depositors for tax inquiries. This led to increased tax compliance, with income tax returns rising from 3.8 crores in 2014 to 6.86 crores in 2017-18. Post-demonetisation, new tax returns surged, and tax collections grew significantly. Additionally, the introduction of GST post-demonetisation saw registered assesses increase by 72.5%, indicating enhanced formalization and economic growth.